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Back to 20VC: Horizontal vs Vertical Agents: Who Wins | Model Routing: Commodity or Increasing in Value | The Future of the Inference Market | Why Founders Should Take Discounts for Tier 1 Firms with Harrison Chase, LangChain, with Harrison Chase.

What Kind of Agent Do Most Apps Need?

Harrison Chase says most apps probably need a vertical agent of their own. The app already knows how a person uses it and can learn that pattern better than a general horizontal agent. In the consumer space both kinds of agents will exist, and the horizontal agent will talk to the vertical one.

Music use on Spotify is very different from use on Strava, so the apps are actually probably best at learning the person, and an agent is probably the best way to expose what they learned. Spotify also has a ton of APIs. A better experience is an agent that wraps the APIs and offers one natural language interface for a horizontal agent to call.

When agents interact, the number of requests goes way up and the infrastructure takes much more strain. He is unsure which provider blocked an account for using Instinct to pull data pretty often, and he does not yet have an opinion on how the strain moves to lower layers. Systems have to be much more bursty and scale much broader. Harry Stebbings wanted tickets to one concert and had availability checked every five minutes for three days, a thousand times the queries humans would send. The future is each provider exposing its own agent, either for a person to use directly or for a horizontal agent to call.

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Transcript

20VC: Horizontal vs Vertical Agents: Who Wins | Model Routing: Commodity or Increasing in Value | The Future of the Inference Market | Why Founders Should Take Discounts for Tier 1 Firms with Harrison Chase, LangChain ·

The Twenty Minute VC: Venture Capital | Startup Funding | The Pitch

More from this episode

  1. Should I Take a Sequoia and Benchmark Discount?Harrison Chase says it is absolutely worth taking a discount for Sequoia and Benchmark.
  2. What Is the Hardest Part of Building AI Agents?Harrison Chase says the hardest part of building agents is getting the system to behave reliably. Models are non-deterministic black boxes.
  3. Will Model Labs Eat the Agent Harness?Harrison Chase says the agent harness should stay neutral, so the memory and context an agent builds are not locked to one model lab.
  4. Why Do Domain Experts Win With Vertical Agents?Harrison Chase says a founder should start a vertical agent at the harness layer, doing context engineering before any post-training of the model, because…
  5. Why Hasn't Anyone Solved AI Memory?Harrison Chase says the hardest part of AI memory is the intelligence that decides what to keep, not the database.
  6. Why Are AI Bills Rising Even as Models Get Cheaper?Harrison Chase says AI bills rise because agents burn far more tokens, even while frontier models get cheaper on price for performance.
  7. What Share of Engineering Salary Goes to Coding Tools?Harrison Chase says they spend roughly 30% of engineering salary on coding tools.
  8. Should Companies Fear Open Source Chinese Models?Harrison Chase does not think fear of open source Chinese models is justified. Some enterprises are fearful of working with open source Chinese models.
  9. Should Founders Discount for Sequoia and Benchmark?Harrison Chase says taking money from Benchmark changes a company's trajectory completely, and a discount is absolutely worth it for Sequoia and for Benchmark.

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